00:20:13 · Jeff Rosenberg, S1
[00:20:13] S4: Well, you know, someone said it earlier, I think it was Mike McKee, about how he wants to change the Fed, but he's locked into the old communication. I would say he's locked in, but he's also trying to change the communications as much as he can. We're seeing the changes in the press conference. You only get one question. He picks which one, if you ask to, shortening it from about an hour to about 30 minutes, the statement being revised. Meltzer would see that in the context of the history of the Fed as, yes, trying to go back to the earlier interaction you had with Priya about, you know, can you go back to those halcyon days? The thing I would add to that conversation is, The big change is the role of financial conditions and consumption because consumption is so powered by the wealth effect. That linkage you didn't have in the halcyon days. It was much more manufacturing, much higher savings rate, much less consumption out of debt financed means, so much less interest rate sensitivity and financial condition sensitivity. So that aspect, and that's what we heard, the transmission mechanism is through financial conditions. That's the primary way in which the Fed's policy setting affects the economy. So I think we learned a lot about that, even though not much was changing to Jonathan's comments earlier. Inside some of this conversation, I think we did hear some interesting data points. [00:21:34] S1: Jeff, diplomatic. Appreciate it. Thank you, sir. Jeffrey Rosenberg there of BlackRock.